Oslo/Copenhagen, October 31, 2001

Nutri Pharma ASA (OSE: NUT) today announced nearly 50% growth in third quarter revenues. Third quarter revenues grew from NOK 3.0 million last year to NOK 4.5 million this year.

Financial Overview (all figures in NOK million)

 

INCOME STATEMENT	Q3 2001	Q3 2000	1.1-30.9 2001	1.1-30.9 2000
Total revenue	4.5	3.0	12.4	5.2
Total operating expenses	32.0	20.7	110.6	66.6
Results of operations	-27.6	-17.6	-98.2	-61.4
Total financial income and expenses	6.3	8.4	21.7	13.8
Ordinary profit before taxes	-21.3	-9.3	-76.6	-47.6
Tax on ordinary results	0	0	0	0
BALANCE SHEET	30.9.2001	30.9.2000	31.12.2000
Total long term assets	33.2	44.7	44.2
Total current assets	342.7	497.0	474.2
Total assets	375.9	541.8	518.3
Total equity	366.6	529.6	502.7
Total liabilities	9.3	12.2	15.6
Total equity and liabilities	375.9	541.8	518.3

Financial summary

• Pre tax result for the third quarter was negative NOK 21.3 million compared to negative NOK 9.3 million same period last year.
• Pre tax result for the first nine months was negative NOK 76.5 million compared to negative NOK 47.6 million same nine months last year.
• For the first nine months total revenues ended at NOK 12.4 million compared to NOK 5.2 million same period last year.
• Total financial income and expenses was NOK 21.7 million for the first nine months, compared to NOK 13.8 million the same period last year.
• EBITDA third quarter was negative NOK 26.1 million.
• EBITDA first nine months was negative NOK 94.2 million.

Total balance end of September was NOK 376 million, of which NOK 309 million is cash, cash equivalents and certificates. Total equity end of September was NOK 367 million.Royalties
Revenues are chiefly based on royalties from the weight reduction and weight-control products Nutrilett® and ScanDiet™. Nutrilett® is produced and marketed in the Nordic area by Nycomed Pharma, and ScanDiet™ is marketed in North America by GNC (Numico).Operating costs
The increase in operating costs is associated with the development of the international commercial effort. Total business development costs so far this year has been NOK 10.3 million, R&D and product development NOK 21.3 million, marketing NOK 25.4 million, staff NOK 27.5 million, administration NOK 22.2 million and depreciation NOK 4.0 million.Market Development
The work with establishing a joint venture together with Nycomed Pharma in the Nordic and Baltic areas is proceeding in line with plans. This joint venture will become fully operational from first quarter 2002. The co-operation will consolidate and broaden the market position for Nutri Pharma's products in these markets.ScanDiet‘ sales in North America are healthy, considering that the product is not available in the mass market, but chiefly in speciality outlets. Nutri Pharma's licensee in North America, GNC, is currently planing the introduction of an extended product line, which should positively influence future market development. Sales in these markets will however reflect seasonal fluctuations.Earlier this year Nutri Pharma entered into an agreement with Faulding that opens for market introduction of Nutrilett® products in Australia and New Zealand. Preparations for launching Nutrilett® as the first of such products are proceeding according to plans.Business Development
Over the last period Nutri Pharma has followed a 100-day plan initiated by the new management and board. This plan includes implementing new management structures, review and development of financial, research and commercial strategies. The first phase of this plan has been approved and is in the process of being implemented.“It is clear to us that Nutri Pharma possesses unique technology, strong patents and products and the financial resources to drive the business to success in large, growing and developing markets,” Graham Waters, CEO Nutri Pharma says. “With an embracing vision, clear and logical strategies executed by a strong, effective management following a concise action plan – we have already passed several short term milestones, and aim to build on these “wins” to develop long term objectives.”R&D and product development
Nutri Pharma has entered into a series of product development agreements with leading suppliers within several sectors of the nutrition market. The objective is to introduce several food products with Abacor® as active, cholesterol lowering agent. Nutri Pharma has previously reported that the company initially was too optimistic in its evaluation of time needed to successfully develop such products. In most sectors development now is in line with the new projections, and the quality of these products are undergoing a steady improvement. The first of these products should be ready for market introduction in the fist half of 2002.Treasury Stocks
The total amount of treasury stocks is 6.801.625. So far this year, the company has invested NOK 60 million in treasury stocks. From April 1999 and to date NOK 73 million has been invested, with an average share price of NOK 10.76. These investments were made in accordance to AGM decisions and no substantial new purchases should be expected.Summary and outlook
The final results for 2001 will still remain negative due to business development costs. Careful management and achievement of business milestones will result in future product and partner expansion

The complete Q3 PDF file and PowerPoint Report can be downloaded from the

INVESTOR

page

 

For further information, please contact:

Graham Waters, CEO +47 23 31 08 80
Åge Østerstrøm, CFO +47 23 31 08 80